Economic Policy and Technology Choice of Heterogeneous Producers

verfasst von

Michael Hübler, Gregor Schwerhoff

Abstract

This article introduces a new Hopenhayn-Melitz-type model of heterogeneous producers with endogenous technology choice. Different from previous trade models, it describes smallholder producers in rural areas of developing countries in the context of environment and development economics. Shocks (climate change) and various policies affect the producers’ endogenous choice between market entry or exit and between simple or advanced technology. This adds new margins of adjustment to models used in this context. Based on these mechanisms, the theoretical analysis identifies a novel type of the rebound effect via market entry. The numerical application to coffee production in rural Vietnam shows that secondary effects of the shocks, such as changes in the number of producers, can be larger than the original impact. Technology-supporting policies can have unintended detrimental side effects on less productive producers.

Organisationseinheit(en)

Institut für Umweltökonomik und Welthandel

Externe Organisation(en)

Justus-Liebig-Universität Gießen
Mercator Research Institute on Global Commons and Climate Change (MCC)
International Monetary Fund

Typ

Artikel

Journal

Journal of the Association of Environmental and Resource Economists

Band

10

Seiten

1369-1404

Anzahl der Seiten

36

ISSN

2333-5955

Publikationsdatum

09.2023

Publikationsstatus

Veröffentlicht

Peer-reviewed

Ja

ASJC Scopus Sachgebiete

Volkswirtschaftslehre und Ökonometrie, Natur- und Landschaftsschutz, Management, Monitoring, Politik und Recht

Ziele für nachhaltige Entwicklung

SDG 13 – Klimaschutzmaßnahmen

Elektronische Version(en)

https://doi.org/10.1086/724517 (Zugang: Geschlossen)